Contactless payment technology incorporates proximity communications between two devices to authenticate and enable payment for goods and services over the air (OTA) or without physical connection. Near Field Communication (NFC) is an example of a proximity communication option that can enable contactless payment technologies and that is supported by the Global System for Mobile Communications (GSM) Association. RFID is an example of a proximity communication method that can be adapted to enable NFC contactless payment technology. NFC communication distances generally range from about 3 to about 4 inches. Such short communication distances enable secure communication between close field proximity enabled devices. Proximity enabled contactless payment also can be implemented on Code Division Multiple Access (CDMA) devices with an embedded secure element within an NFC controller or a Re-usable Identification Module (R-UIM) type card.
Existing contactless payment technology is not integrated with NFC mobile device communication elements. As a result, a user must maneuver through multiple activating steps to initiate a payment transaction. For example, the mobile device must not only be turned “on” but must also be “active.” A user must unlock their mobile device and launch a contactless payment application, such as an electronic wallet application. Within the application the user must signal an intent to initiate a payment and enter security information such as a personal identification number. The user must also select a payment option, such as a particular credit card, to use in the payment transaction. The majority of these steps must be repeated for each payment transaction.
Accordingly, there is a need in the art for methods and systems that integrate contactless payment technology with the mobile device's contactless communication systems and streamline the process by which a user can securely initiate payment transactions.